Are you in the hard pace of your life and the question ‘Why am I poor?’ is haunting you? And are you deeply worried about your life being financially broken?
Want to create a sophisticated lifestyle for your family and still lagging?
If you merely got hit by any of these thoughts, you are going to get a path for it. No one in this world is born with the induced caliber and supernatural powers, they just build their own on the way to success.
What things differ from rich people from poor? – Many aspects like the decisions they make, the path they choose, the hard work they contribute to destine their future.
Most successful people who stood in front of us today are the best examples of sectional people who overcame their failures.
Most of them are financially broken, bankrupted sometimes. But they never gave up, they learned their lessons from their downfalls and rise like a phoenix from the ashes of its own body.
If you still struggling with the financial crisis, here we are going to share 12 practical tips that help you to get financial freedom, motivate you in tough times, and finally, you will never ask yourself ‘why am I poor?’.
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12 Reasons You Always Poor
Follow the below tips from people who once financially broke and achieved financial freedom on their own. Compare and know where you are making mistakes and what you need to fix your current financial situation.
1. Set The Goals
“A goal is the one which drives you towards what you want and keeps motivating you to work towards your passion or desire”. Most of the people lost, not because of not knowing how to play but because of, not knowing what they play for.
Everyone’s game is different, their choice is different because there is no comparison between thoughts. Your goal or aim or ultimate desire of your life define your career progress.
A goal drives you towards your success, Financially if you want to get succeed, set the goals for financial achievement.
And keep on putting your efforts or energy or your thinking to accomplish. Your goal and your journey together make up what you want in life.
2. Not Having A Secondary Income Source
Depending on a single job or income source is very hard these days. As an employee, you need to live under the limits of your salary, right? You need to compromise everywhere except you have a high-paying job.
Creating a secondary income source isn’t that hard these days especially when you take advantage of the Internet. If you know how to match your skills with appropriate opportunities, the Internet is a great place for you to sell your services or skills.
There are many people who started part-time jobs online and finally quit their regular job after earning more and enough from those side jobs. Why it can’t be you.
There are several ways to create a secondary income source. It won’t be that much hard once you choose what you love to do.
3. Never Blame Others
Stop blaming others for your mistakes. We can witness plenty of situations where this blaming plays a crucial role. When we fail, instead of accepting the failure, we go for alternatives to cover up our failure.
That is pointing out someone else’s actions or mistakes to cover up our fall. Never be afraid of what others may think of you or something else.
First and foremost, have the courage to fail. If you fail then it teaches you many things to learn which can further assist you not to repeat the same.
Failures remain failures until or unless we are learning something from them. These lessons can turn into our “Life-changing Lessons”.
4. Never Make Excuses
“Excuses sounds good for those who are making them up”, It is not an excuse, it’s an official exit. An exit from your journey, making a way out from your desire and destination.
People who are making excuses are more likely to be lethargic, unorganized, unplanned, and procrastinating in nature. Always make a To-do list on a daily basis which can force you to accomplish your daily target.
Target-based approaches always lead to better end results. Even financially, you need to take tough decisions and commitments and you should finish them in time.
It may be a monthly savings plan or kids’ education or emergency fund or anything related to financial matters, avoiding making excuses is always a better idea with great results.
5. Be More Conscious About Credit Cards
We are witnessing a lot of people who were stuck in a financial crunch even after making a good amount of income.
The main reason for that can be over usage of the credit cards without marking a financial limit and it can turn things worse and leaves you in a ‘Debt Trap’.
Everyone must maintain a financial chart of expenses for what they are spending and mark each and every lavish expense to cut down short on his next go.
For this not having a credit card is highly recommended. The post-payment billing process is the major setback for starters of financial management.
As they start now, they have some type of excitement and desire about possessions, accessories, or sophisticated lifestyles.
Instead of thinking about the financial issues that you get from that particular purchase, your mind will start to make up alternative solutions to influence you towards the purchase.
And in the end, you will be again left with a serious financial crunch. There are a lot of people who were financially broken mainly because of this unnecessary and over usage of credit cards in purchases.
6. Focus on Savings
Have you planned for your future? Do you have any plans for your future?
To face any situation, you need a basic go called “Savings”. Be ready for every situation which is going to knock on your door, Either it is opportunity based or emergency based.
For suppose, if a stock market share is going in the bull pace, but what if you lack the investment. Or you met with an accident and need medical attention immediately. Whatever the situation is, you should be able to tackle it, so concentrate on savings too.
The key mantra is “Save money for yourself, your growth, and your future”.
Most people being poor and financially broken just because they live in the present and plan for the present and don’t care about their future.
One should have a vision over his/her future too to tackle the worst situations. So start your savings from now, there is nothing called the wrong time to start the right thing.
Related: 117 Creative Ways to Save Money in 2021.
7. Stick To A Budget
Budget is one of the vital things that you need to concentrate on while planning a stable financial situation.
And most people who are being trapped in this dogma of poor or financial crashes are the ones who never concerned about the concept of budgeting.
Especially in the journey to avoid financial imbalances, you should concentrate on the proper budgeting. A consistent analysis of your income and expenses will lead you towards a perfect budget.
Even consider your plans, savings, and investments in the making of your budget then the output will be perfect. According to a survey, those who never plan for their budget will be facing several financial problems in their lives.
8. Stop Impressing Others
Impressing others is the deadliest thing that one should not do in their entire life. Because your life is yours, why you keep on investing your time, energy, and money on cloning someone else’s expectations.
The main false illusions of this theme can be listed as,
- Materialistic possessions like house, car, jewelry or rich accessories, and
- If I live my life as everyone expects, then my reputation and pride will be boosted!
Likewise, most people trapped by these illogical illusions and try mocking by impressing others and ultimately pushing themselves to financial crashes.
So never buy or spend your money to impress others but spend on to build what you need for your life. People will never be the same, they may change and accordingly their choice of impressions too.
If you put yourself on the mission of satisfying others, you will be continually spoiling your entire income or savings, or future amount on this.
9. Avoid Impulse Purchases
When you got something in your heart, your mind will take action with a logical approach but your heart always wins.
Especially in the purchasing scenario, which can finally impact financial stature deeply.
Poor or financial crashes can be avoided if you start avoiding yourself from these impulses and unnecessary purchases. Organize yourself with consciousness on each and every purchase you make.
One who manages his purchases to a maximum extent and saves more can have a scope to maintain a large sum of amount for plans or investments.
10. Concentrate On Spending Habits
We all think earning is quite an important thing to accumulate our wealth. But spending is the crucial thing to stabilize and increase your savings.
Being financially secured and sophisticated depends on how much we earn, but keeping that thing balanced throughout the journey depends on how you are spending your money.
According to a recent survey conducted on human behavior, most people are deeply obsessed with the possession of fancy clothes, shoes, mobiles, or even for traveling.
This type of lifestyle even looks good for a certain period, but rather than that what it costs you is the main thing you need to concentrate on.
Those who are poor or financially broken even after getting high pay are only because of this unawareness of the logical and best approach towards purchasing and management.
11. Invest In Self First
If you want to create something, first create yourself. Unless you make yourself stronger, you can not beat the rest of the beasts, unleash the beast inside you.
Here, we can see people who are investing in the business, entrepreneurship, real estate or industry, etc. But they are merely missing the point of investing in themselves.
We should build our personality and learn the skills to upgrade ourselves to take a perfect decision which even drives our future ways. First, define yourself then it will define your life.
Because most bankrupted or financial problems facing people are invested in their extreme potential in what they believe in what they want to succeed. But still, they got bankrupted just because of the lack of enough skills and consistency in the up-gradation of skills.
First, invest in yourself, make yourself stronger and the rest of the things will reach you with ease.
12. Organize Your Finance
Finance organizing can be taken into the wide case scenario in money management.
As we have discussed a few of the note-making tips to avoid being poor and financially broken, you should make your finances organized and stable rather than just making it happen.
Even losing bills or avoid tracking of your expenses versus income can lead to unexpected flaws in your finances. This organizing of your finances will make your stay awakened on the spending less and to be more conscious about the savings.
If you are struggling with the steps of organizing and tracking all these financial issues, Technology always there to organize where humans fail to.
Try some financial apps which will be available on the web for the best performance and service-based record. Keep your all bills in one place and assess your entire expenditure at the end to have a better picture of where you are putting your bucks.
And this even helps you to make the best steps to avoid that over-expenditure and try to pay the bills as soon as you receive them.
13. Spend Less Than You Make
Keep on assessing your habits and you will be wondered how far you are wasting money on unnecessary and lavish expenditures.
Be yourself and live your life with your vices in a proper manner. Try to convince your partner and make them align with a single lane of spending and save effectively for future growth. By simply, having the best partner in your journey can even add glory to your paces of life.
Focus on self-awareness and realize the elements you need to change or develop. Never ignore the small things by perceptions or assumptions of achieving big things, even in finance also this overspending can come into a picture where this ignorance of money value as big or less makes sense.
Siva Mahesh is a full-time blogger and personal finance expert featured on US News, Yahoo Finance, Legal Zoom, The Simple Dollar, Databox, Business.com, Business News Daily, and more. He is the owner/founder of Dreamshala, a go-to place for 100,000+ monthly readers to find legit work from home jobs and make money online ideas.